Published: Thursday March 7, 2013 MYT 8:54:00 AM
CIMB Research maintains Neutral on water sector
KUALA LUMPUR: CIMB Equities Research is maintaining its Neutral recommendation on the water sector in Selangor.
It said on Thursday Puncak Niaga cited loopholes in the Selangor state government's takeover offer as the reason for its inability to make a decision.
“Even if other players are willing to proceed, Puncak's response is a drawback for the state's restructuring plan as acceptances must be unanimous,” it said.
CIMB Research said while Puncak has not rejected the offer outright, this latest development could mean the state extending the acceptance period.
It noted that ultimately, a successful takeover cannot happen without Puncak's acceptance.
“We maintain Neutral on the sector as we believe the restructuring in Selangor is likely to be prolonged, especially if politics come into play. We also keep a Neutral call on Puncak Niaga,” said the research house.